Series 12 – Episode 7 – Supply chain resilience
Paige West speaks with John Young, General Manager, EU Automation about the supply chain and its current challenges.
EU Automation is a global supplier of unused, reconditioned, and obsolete automation parts to manufacturers all over the world.
“When the pandemic hit, we were sort of perfectly positioned to meet the needs of customers that could no longer get the parts they needed,” said Young. “We were sort of there to fill the void and ensure these manufacturers could still get their hands on the parts they needed to keep their machines running.”
Companies have faced huge challenges with their supply chains over the last few years which means they’ve had to reevaluate. Supply chains have to be robust and agile enough to absorb new challenges.
“Because of the growing lead times and stock shortages, there’s been lots of non-cancellable orders and uncertainty on when these parts are going to be received,” notes Young.
Semiconductors have made national headlines in the past two-three years. The COVID-19 pandemic and its domino effect on global supply chains have caused shortages that impacted a multitude of industries. But, at the same time, frequent mergers and acquisitions of semiconductor manufacturers have worsened one of the industry’s biggest problems.
“Diversification of the supply chain is key,” said Young. “Supply chain management if essentially managing risk.”
Young goes on to talk about how we can ensure that goods are reused, recycled, and repaired as much as possible as well as how EU Automation deals with fluctuations in demand.